Overview

• Trump proposed a tariff-credit rebate to give Americans up to $600 on their 2024 tax returns and use import duties to reduce the national debt.
• Senate Republicans, including James Lankford, Ron Johnson and Bernie Moreno, condemned the proposal as fiscally untenable, unaffordable or “insane.”
• Critics warned that anticipated tariff revenue would be fully consumed by rebates, leaving no surplus to pay down debt or fund government operations.
• Sen. Josh Hawley originally floated the $600 credit in July, but his proposal never advanced beyond the suggestion stage.
• Trump’s remark calling Hawley a “second-tier senator” underscored rising tensions and uncertainty over future GOP cooperation on tariff initiatives.